IDBI Bank said that it has raised 250 million Singapore dollars (about Rs 1,108 crore) through a bond issue on Tuesday.
The public sector bank raised the money at an interest rate of 3.65 per cent on bonds with three-year maturity, it said. The issue was oversubscribed 12 times, allowing the bank to price the issue at the tight end of final price guidance (3.65 per cent). Originally, the bond was priced at 4 per cent. This means, at the end of three years when the bond matures, IDBI Bank will have to pay 3.65 per cent interest on its borrowings from the issue.
This marks the entry of an Indian entity in the Singapore dollar bond market, the bank added. The Mumbai-based bank plans to use the proceeds from the offering to meet the demand for foreign currency from its clients, B. K. Batra, Deputy Managing Director, IDBI Bank, said.
The US dollar value of all three issuances put together will be $520 million, according to Melwyn Rego, Executive Director, IDBI Bank.